GEC Alsthom Traction was formed from the merger of GEC and Alcatel-Alsthom (formerly known as Compagnie Générale d’Electricité of France) in 1989, which created a Joint Venture of their Power Engineering businesses (Power Stations, Switchgear and Rail Transport). The UK headquarters of the traction business was based at Trafford Park in Manchester. GEC Alsthom purchased train builder Metro-Cammell based at Washwood Heath, Birmingham from the Laird Group in 1989, bringing into the group a company which had a long association with GEC Traction and its predecessors as a vehicle builder. GEC Alsthom Traction became part of the Transport Equipment Group (TEG) with the French sites Ornans (motors), Tarbes (control equipment) and Villeurbanne (electronic systems, converters and control equipment), later joined by ACEC Transport (Charleroi). A major project in this period was the design and build of the Trans Manche Super Train (TMST) for London. TMST, later known as Eurostar Class 373, was the first TGV with asynchronous traction drive, all TGVs until later Duplex fleets having DC or synchronous traction drives. It was designed for three voltages 750v DC for the UK Southern Region, 3000v DC for Belgium and 25kV for the tunnel and France, and later for HS1 high speed line from the tunnel to London. SNCF later added 1500v DC to 4 trains to allow the trains to run to the Alps. In 1993, as part of the rationalisation of the equipment group, it was announced that the headquarters of GEC Alsthom Traction would move to Preston, leaving only Power Module design and manufacture at Manchester, and a project team was set up at Preston for the regeneration of the Preston site, with the eventual closing of all activities at Trafford Park in 1998. At the same time, there was rationalisation of product lines in the equipment group, with inductors and auxiliary converters moving to Preston, traction motor design concentrated at Ornans, switchgear at Tarbes and electronic control systems at Villeurbanne. GEC Alsthom Traction became Alstom Traction on 22nd June 1998 and the company name survived to 19th August 2008 but was increasingly integrated within the Transport division of Alstom.

In 1988 a joint-venture was formed between the General Electric Company (GEC) with Compagnie Générale d’Electricité (CGE) that led to the establishment of an Anglo-French company, GEC Alsthom in 1989. This company encompassed the Power Generation and Transmission, Rail Transport (25%) businesses from the constituent companies of GEC and CGE. The GEC Alsthom company headquarters were based at Rugby, Warwickshire and the headquarters for Transport were based at Trafford Park in Manchester. GEC Alsthom purchased train builder Metro-Cammell based at Washwood Heath, Birmingham from the Laird Group in 1989, bringing into the group a company which had a long association with GEC Traction and its predecessors as a vehicle builder. In 1998 GEC Alsthom was re-formed and became Alstom with Transport / Alstom Transport one of its major divisions.

In 1929 Vickers Ltd and Cammell Laird merged their rolling stock activities in a new company, the Metropolitan-Cammell Carriage, Wagon and Finance Company Ltd with Vickers and Cammell Laird each holding 50% of the shares of the new company. Following the Second World War, the company manufactured carriages for the railways of the world, including UK, USA, Canada, South Africa, Hong Kong, Singapore, Brazil, Jamaica, and Egypt. In addition, the company manufactured mineral wagons, diesel multiple units and locomotives. However, over this period of sustained high output, international industrial development together with reductions in home market demand as orders were fulfilled, led to the necessity to reduce capacity and in 1962 the Saltley Works were closed and eventually the whole enterprise was concentrated at the Midland Works offices at Leigh Road, Washwood Heath. In the 1970s Metro-Cammell specialised in the design and construction of rapid transit vehicles for customers such as London Underground, Tyne and Wear Metro, Hong Kong Mass Transit Corporation and the Kowloon Canton Railway Corporation. They also built Maglev vehicles for Birmingham Airport, diesel multiple units for BR and Mk IV coaches for BR. In May 1989 the Laird Group sold their transportation interests to GEC Alsthom and Metro-Cammell became part of the new Anglo-French Power Generation and Transportation Group. This led to involvement in the construction of the Eurostar trains for the Channel Tunnel project. The name Metro Cammell disappeared forever in 1998 when the owners floated the company under the name Alstom.